Bitcoin Rally Supported by Solid Spot Demand Amid Rising Fed Risk
A recent surge in Bitcoin's price has been backed by solid spot support, according to QCP Capital. The cryptocurrency climbed from around $63,500 to nearly $80,000 within a week, with U.S. spot Bitcoin ETFs recording approximately $2.8 billion in net inflows across eight consecutive sessions.
QCP's derivatives data shows that leverage has not been the main engine behind the rally. Bitcoin-denominated futures open interest dropped while prices advanced sharply, falling from roughly 646,000 BTC to around 588,000 BTC during the rebound.
The market entered the $80,000 region without the same level of leverage buildup that often accompanies sharp liquidation-driven reversals. However, derivatives conditions remained below levels associated with heavily crowded positioning.
QCP identified $81,000-$86,000 as Bitcoin's next important trading region, citing futures funding and open interest as measurable indicators of whether spot demand continues dominating the rally. Rising Fed policy risk creates a separate macroeconomic challenge for the cryptocurrency market.